Reward System Framework

Successful organizations in today's environment are shifting emphasis from
the traditional command and control to a more collaborative philosophy of
management. They are shifting from:

Focus on products to focus on customer needs

Enduring structures to speed and responsiveness

Tight control to partnerships and teamwork

A fair day’s pay for a fair day’s work to rewarding results
and process

The primary weaknesses of traditional reward systems are that they are:

Not focused on reinforcing institutional goals

Seldom really contingent on what one does or achieves

Focused on results with little understanding of the process

Not integrated with key business imperatives

Based on the concept of command and control, not in creating shared
success

The primary purpose of a reward system should be to reinforce institutional
goals by using not only base compensation and recognition strategies that
have been the mainstay of traditional reward systems, but also variable compensation
that addresses: